How Do Real Estate Agents Get Paid? - Real Estate Information

-
How much is real estate commission?
Typically, real estate commission is 5%–6% of the home’s sale price. In most areas the buyer’s agent receives 2.5%–3% in commission and the seller’s agent receives 2.5%-3% in commission.


Who pays the commission?
If you are buying a home, you don’t have to pay real estate agent commission; however, you still have to pay closing costs. On the other hand, if you are selling a home you pay commission to both your agent and the buyer’s agent when your house closes.

Can you negotiate commission fees?
Some agents will lower their commission fees, particularly if they are representing both the buyer and the seller in a home sale (also known as dual agency).

How does commission work for buyers?
The home seller pays the commission for both the seller’s agent and the buyer’s agent. But that doesn’t mean that there is no cost to the buyer. Sellers sometimes account for the fee they’ll be paying and pass costs along by raising their listing price.

Read More Topics:
Do you have to pay commission if you don’t buy a home?
Real estate agents are paid at the end of the process, so if you don’t buy a home, they won’t be paid for their time. On the other hand, if you decide you don’t like your agent and want to work with someone new, it may be difficult to break up with them if you’ve signed a contract (also known as a buyer’s agency agreement). Make sure to ask the right questions before signing a contract!

Do you have to pay commission if your home doesn’t sell?
Short answer: Probably not. Real estate agents are paid when you sell your home, so if your home doesn’t sell, you shouldn’t owe them a commission.

Click here to get more details about how much do realtors make from a single home?

Source: redfin

Comments

Post a Comment

Popular posts from this blog

Pros and Cons of Real Estate Career

-
Image
Though a lot of people think a real estate career is easy money, there is a lot more to it than that. Real estate can be a very rewarding career choice for just about anyone. Those entering the field have quite varied backgrounds and skill sets. You don't need to be a "salesman". This is primarily a service business, and serving your clients well will contribute to your success. The Pros and Cons Of Real Estate Career Any given day, you may bump into a real estate agent who's a recent high school graduate or a semi-retired business executive in her second career. Many have found it to be a natural transition from another sales career and more fulfilling to boot! After all, you're helping people in what is usually the largest financial transaction of their lives. That's not to mention the emotional impact of changing homes that may be in completely different areas of the country or even the world. If you question a group of brand new agent
Read more

The Pros and Cons of Being a Real Estate Agent 2018 - Realities

-
Image
Real estate is a career with significant rewards and as many challenges. Though it can be lucrative, it requires hard work and sacrifice. If you’re interested in going into real estate, we’ve put together a list of the pros and cons of becoming a real estate agent. Pro: You have the flexibility to choose your own schedule A majority of Real Estate Professionals get into the business because they want a flexible schedule, and it’s true, in real estate you are your own boss and can arrange your day so that you’re able to attend your child’s sporting event or be home for the after-school rush. You don’t clock in and clock out every day. “There have been tremendous shifts in terms of when, where, and how people are working,” Sarah Sutton Fell, the CEO of FlexJobs told U.S. News, “and in the last five years we’ve seen a big increase in flexible work options, both being offered by employers and being sought by professionals.” Real estate is one of those prized careers that hav
Read more

How do Reverse Mortgages Work? - Reverse Mortgage Information

-
Image
When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan in which the lender pays you. Reverse mortgages take part of the equity in your home and convert it into payments to you – a kind of advance payment on your home equity. The money you get usually is tax-free. Generally, you don’t have to pay back the money for as long as you live in your home. When you die, sell your home, or move out, you, your spouse, or your estate would repay the loan. Sometimes that means selling the home to get money to repay the loan. There are three kinds of Reverse Mortgages:  Single purpose reverse mortgages – offered by some state and local government agencies, as well as non-profits;  Proprietary reverse mortgages – private loans; and  Federally-insured reverse mortgages , also known as Home Equity Conversion Mortgages (HECMs). If you get a reverse mortgage of any kind , you get a loan in which you borrow against the
Read more